Seeing Both Sides: Credit and Sales
By Michelle Kim
Consider these issues:
A credit manager may feel that the salesperson's judgment about
a customer is clouded by their personal relationship with the customer.
The salesperson may feel that distance from the customer and limited
information about the company reduces the credit department's ability
to make correct decisions.
The sales department may feel that credit decisions are sometimes
arbitrary. The credit department has an obligation to take the time
to explain the decision-making process to the sales department.
The credit department may be under orders to reduce delinquencies
and bad debt losses. Unless the sales department is informed of these
instructions, it may feel that the credit manager is being too conservative.
Before explaining why a negative credit decision was made, the
credit manager should preface the conversation by reminding the salesperson
that he or she may not be able to reveal all of the reasons for the
decision because some information in the customer's credit file may
Reprinted with permission from the © 2001 Covering
Credit Newsletter 9/10/02 Edition,
All Rights Reserved